Muscat, Oman & Malé, Maldives, October 18, 2020 (AETOSWire): Oman’s largest cement manufacturer, Raysut Cement Company (RCC), said it has closed the deal of acquiring 75 percent of LafargeHolcim’s cement terminal at Thilafushi Island in the Maldives, and a new joint venture – Raysut MaldivesCement Pvt. Ltd. – has been formed.
The new entity with State TradingOrganization (STO) of the Maldives owning 25 percent has plans to expand the terminal’s capacity, currently 75,000 tons per annum, by more than 100 percent in the future to over200,000 tons per annum.
This acquisition opens a corridor of trade between Oman and Maldives not only in the cement industry with RaysutCement but also in other areas that will benefit both economies. Raysut Cement is proud to have opened this new economic relationship.
“The Maldives acquisition will boostRaysut’ s profitability and production to full capacity, particularly of its plant in the State of Salalah in Sultanate of Oman, RaysutCement Company this year faced economic conditions, including the economic conditions that resulted from the global spread of Covid-19,” said Sheikh Ahmed Yousef Alawi Al Ibrahim, Chairman of RCC Group.
The terminal will be owned and operated by the RCC-STO joint venture.
The takeover of the terminal in the Indian Ocean country marks a new phase for the Muscat Stock Market listedRaysut since it will be adding new geography to its strategic global investment plan.
“Our foray into the Maldives will help drive self-sufficiency of cement in the Maldives, which currently is predominantly an import market. Raysut is looking at adding local value in the Maldives by installing production facilities to ensure there is at least 40% local content. This will also make the market more competitive from a price point which will have its positive impact on infrastructure development in the island nation,” said RCC GCEO, Mr. Joey Ghose.
“This is a milestone investment for Raysut since the cement major will be pitching into a market supplied currently by other players from South Asia. It is also a significant move reinforcing its strategy to diversify from only being a South Oman based player to grow into a global player in the cement industry. RCC in the Maldives will be competing with cement players from India, Indonesia, and Malaysia,” said Acting Deputy Group CEO, Mr. SalimAhmed Alawi Al Ibrahim.
“The acquisition followed by the formation of the new JV will cement Raysut’ position further as an emerging global cement player with significant overseas presence in markets of the Middle East and East Africa, said RCC GCEO, Mr. JoeyGhose.
He said Maldive’s investment is in line with the corporate strategy of Raysut to expand its footprint globally and be a partner in developing countries where it will invest with established local partners.
